A LOST DECADE – A WAY AHEAD? December 21, 2009
Posted by Marlowe Cassetti in Blogroll.trackback
Another wave of corporate dealmaking stoked investors’ confidence in the economy and carried stocks sharply higher Monday.
Analyst upgrades of Alcoa Inc. and Intel Corp. and positive momentum on President Obama’s health care overhaul also helped drive a broad advance on the stock market. Major indexes closed off their highs of the day but still rose about 1 percent. The Dow Jones industrial average jumped into the black for the month.
Bond prices tumbled as stocks rose, pushing the yield on the benchmark 10-year Treasury note up to its highest level since August. The dollar strengthened, hurting commodities prices.(commentary & photo courtesy of AP)
The Wall Street Journal calls the current decade the “Lost Decade” since it has been the most dismal decade ever for the stock market. Even the 1930s were better. With that sobering statistic in mind, how do we plan for the future? Surely the next decade, which we are about to enter, will be better. Statistical history says, yes it will be, but I suspect we are in for a rough ride. The “Way Ahead” will be fraught with dangers and opportunities. I somehow feel confident that a systematic, objective trading/investing methodology, such as RSI, will be the guiding light to The Way Ahead.
No new RSI picks today. Catch you tomorrow.
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